The IRS has laid off 7,000 employees nationwide right at the onset of the 2025 tax return filing season, part of a broader deficit-reduction measure spearheaded by the new Department of Government Efficiency. Despite assurances from former IRS Commissioner Charles Rettig that operations would remain unaffected, experts like Michael Kaercher cautioned against potential delays in refunds and limited customer service capabilities. Additionally, alterations to internal policies could complicate taxpayer compliance, suggesting that challenges may extend well beyond the current filing season.
Mass layoffs at the IRS, totaling 7,000 workers, are taking place during the critical tax return filing season, raising concerns about disruptions to operations.
Former IRS Commissioner Rettig stated the mass layoffs shouldn't significantly impact filing season operations, but experts warn potential risks to efficiency and taxpayer compliance.
Michael Kaercher highlighted that the IRS's layoffs could lead to delays in tax refunds and raised concerns about whether critical staff were retained amid the cuts.
Kaercher also remarked that the IRS's recent policy changes might not only affect this tax season but have long-term implications for the agency's function and taxpayer compliance.
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